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US debt deadlock continues as Congress splits on deal

The US Senate has narrowly rejected a plan passed by the House of Representatives to raise the nation's debt limit.

The Republican bill was defeated 59-41 when it reached the Democratic-controlled Senate, where a rival plan to tackle the problem has been raised.

The US risks defaulting on its financial obligations if a federal budget deal is not struck by 2 August.

Will Grant reports.

  • 30 Jul 2011